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Long-run equilibrium occurring at an output level

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Reference no: EM132343949

In the AD-AS model, assume that an economy's aggregate demand, denoted by QD=400-P, and SR aggregate supply, denoted by QS=P, currently intersect at price level = $200 and the full employment output level = 200. Which of the following event is most likely to explain a new LONG-RUN equilibrium occurring at an output level of 300 and a price level of $100?

A) Price of crude oil falls.

B) The currency of Country X depreciates.

C) Tax rate increases in Country X.

D) Technology improvement.

Reference no: EM132343949

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